Why doesn’t the TSP allow a higher number of unrestricted IFTs per month, such as four per month?
TSP studies showed that allowing four IFTs per month would not result in any meaningful reduction in the dollar amount of the daily trades. Allowing three per month would result in a 31% reduction and two per month would result in a 53% reduction. TSP research has shown that less than 1% of participants make more than 12 IFTs per year. Therefore, the regulation will not affect 99% of participants. It will allow participants to rebalance their accounts twice per month, which the Plan’s two investment consultants, Mercer and Ennis Knupp, view as more than adequate.
